Uttarakhand Van Vikas Nigam, Dehradun V. CIT, Dehradun

ITA 5981/DEL/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73945 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 07-01-2015
• Assessment Year: misc
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDRAKAR
• Assessee Lawyers: D C AGARWAL; ASHISH RAJSHUKLA S
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI A.T. VARKEY, JM ITA NO.5981/DEL/2014 ASSESSMENT YEAR : NA UTTARAKHAND VAN VIKAS NIGAM, ARANYA-VIKAS BHAWAN, 73, NEHRU ROAD, DEHRADUN. PAN: AAALU0009M VS. CIT, AAYAKAR BHAWAN, SUBHASH ROAD, DEHRADUN. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : S/ SHRI D.C. AGARWAL & ASHISH RAJSHUKLA, ADVOCATES DEPARTMENT BY : S HRI J.P. CHANDRAKAR, SR.DR ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE CIT DENYING REGISTRATION U/S 12A(A) OF THE A CT VIDE HIS ORDER PASSED ON 27.3.2002. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE A SSESSEE IS A STATE CORPORATION ESTABLISHED ON 1.4.2001 BY THE UTTAR PR ADESH FOREST CORPORATION (UTTARANCHAL AMENDMENT) ACT, 2001 IN CO NSEQUENCE ITA NO.5981/DEL/2014 2 TO THE DIVISION OF UP BY UP RE-ORGANISATION ACT, 20 00 PASSED BY THE PARLIAMENT. THE STATE OF UTTARAKHAND ADOPTED T HE UP FOREST CORPORATION ACT, 1974 THROUGH NOTIFICATION DATED 17 .5.01. IT WAS REPLACED BY THE UTTAR PRADESH FOREST CORPORATION AC T (UTTARANCHAL AMENDMENT) ACT, 2001. THAT IS HOW UTT ARAKHAND FOREST CORPORATION WAS FORMED ON THE SPLIT OF UTTAR PRADESH FOREST CORPORATION. 3. THE ASSESSEE FILED APPLICATION IN FORM NO.10A FO R REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961. THE LD. CIT REJECTED SUCH APPLICATION BY GIVING THE FOLLOWING S HORT REASONS:- 2. AS PER THE DOCUMENTS ENCLOSED WITH THE FORM NO.10-A, IT IS NOTICED THAT YOU HAVE BEEN CONSTITUTED AS A CORPORATION BY THE NAME UTTARANCHAL VAN VIKAS NIGAM. I MAY INVITE YOUR ATTENTION TO THE PROVISIONS CONTAINED U/S 12A OF TH E I.T. ACT VIDE WHICH THE REGISTRATION U/S 12AA CAN B E GRANTED TO THE TRUST OR INSTITUTIONS NOT TO A CORPORATION. IN VIEW OF THIS YOUR APPLICATION U/S 12A IS REJECTED. 4. THE ASSESSEE IS AGGRIEVED AGAINST THE DENIAL OF REGISTRATION. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED FROM TH E ABOVE EXTRACTED OBSERVATIONS OF THE LD. CIT IN DENYING RE GISTRATION TO THE ITA NO.5981/DEL/2014 3 ASSESSEE, THAT THE ASSESSEE WAS CONSTITUTED AS A CO RPORATION AND ACCORDING TO HIM, THE PROVISIONS OF SECTION 12A, WH ICH GRANT REGISTRATION U/S 12AA OF THE ACT, TALK ONLY OF TR UST OR INSTITUTION AND NOT A CORPORATION. APART FROM THE ABOVE OBSERV ATIONS, THERE IS ABSOLUTELY NO DISCUSSION ABOUT THE OBJECTS OF TH E ASSESSEE AND THE DETERMINATION OF THE QUESTION AS TO WHETHER OR NOT SUCH OBJECTS ARE CHARITABLE WITHIN THE MEANING OF SECTIO N 2(15) OF THE ACT. IN OUR CONSIDERED OPINION, THE LD. CIT WAS NO T JUSTIFIED IN REJECTING THE ASSESSEES APPLICATION SEEKING REGIST RATION OUT RIGHTLY GOING BY THE FACT THAT IT WAS CONSTITUTED A S A CORPORATION. THE MERE FACT THAT THE ASSESSEE IS A CORPORATION, C ANNOT IN ITSELF BE A REASON TO DENY REGISTRATION AT THE VERY OUTSET WITHOUT EXAMINING THE OBJECTS OF SUCH INSTITUTION. IF THE OBJECTS FULFILL THE REQUIREMENTS STIPULATED UNDER THE PROVISIONS OF THE ACT, THEN, THERE CAN BE NO REFUSAL TO THE REGISTRATION SIMPLY ON THE GROUND THAT THE ASSESSEE WAS CONSTITUTED AS A CORPORATION. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF LD. CIT FOR DISPOSAL OF THE A SSESSEES APPLICATION FOR GRANT OF REGISTRATION ON MERITS AS PER LAW, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.5981/DEL/2014 4 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 08.01.201 5. SD/- SD/- [ A.T. VARKEY ] [ R.S. SYAL ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 08 TH JANUARY, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.